The Free TON community will create a public, nonprofit foundation and burn 3 billion TON Crystal

The Free TON Governance Board has approved the proposal to continue cooperation with the FreeTON DeFi Alliance — a coalition of developers advancing the decentralised finance sector on the Free TON blockchain.

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The Free TON Governance Board said that the alliance’s proposals extend beyond its specialist remit and include a strategy for the broader development of the Free TON project. As Vladimir Maslyakov, the technical director of Minergate, a member of the Free TON Governance, explained, the proposed programme is a collaborative effort that emerged from discussions within the Governance and the Free TON community for about two months.

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Reduction of TON Crystal issuance

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Total TON Crystal issuance stands at 5.04 billion coins, which at the launch of the Free TON network were allocated to three special giver wallets intended to pay validators, developers, as well as winners of contests and partners. Currently around 735 million ‘crystals’ are in free circulation.

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“The system of giver wallets with undistributed TON Crystal coins carries a substantial risk for the project’s long‑term capitalization,” the FreeTON DeFi Alliance asserts.

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They proposed to reduce the total supply and burn 3 billion ‘crystals’ that remain on the giver wallets — that is, more than halving the overall TON Crystal emission.

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Maslyakov explained that coin burning will probably occur in stages, “to avoid placing significant pressure on the market and price and to prevent artificial scarcity during a period of active network growth.”

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TON Crystal listing

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To make TON Crystal accessible to a broad audience while ensuring its liquidity and a “fair” market price, the authors noted that listing on leading centralized and decentralized crypto exchanges is necessary.

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However, listing is a complex process that in some cases may incur fees. In addition, technical support for integrations with external resources must be maintained.

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The FreeTON DeFi Alliance proposed creating and implementing a TON Crystal listing strategy, estimating the costs of tackling this task at 250 million ‘crystals’.

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Business development

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“A fully decentralised approach has yielded some results and about 30 partnerships,” the FreeTON DeFi Alliance noted.

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They stressed that this direction still faces various issues, including a lack of required skills and accountable community members, a misunderstanding of the project’s aims, and an inability to effectively support partnerships, among others.

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To improve the situation, the FreeTON DeFi Alliance proposed a five-point programme:

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1. Attract the necessary number of experts from within the Free TON community to work with partners.
2. Implement procedures that will “screen” partnership proposals received by Free TON and appoint competent project representatives to provide help and guidance.
3. Conduct regular retrospective analyses of partnerships.
4. Maintain an up-to-date list of partners, categorise them by sector and appoint an expert for each group.
5. Create an incentive system for Free TON community members who participate in the project’s business development.

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According to Maslyakov, the community should establish an expert team for attracting and supporting partners, operating under the model of a traditional venture-capital fund —

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“The difference is that the beneficiaries of this endeavour will be the entire network and its stakeholders.”

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Developer recruitment

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Currently, Free TON’s technical infrastructure is developed through contests, but this “cannot satisfy all needs for development,” the FreeTON DeFi Alliance says.

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Representatives of the alliance proposed experimenting with new incentive systems, such as grants used by other crypto projects to attract developers. The new methods should be compatible with the “Free TON ideology.”

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They noted that they propose to preserve the contest system for developing Free TON infrastructure with open-source code for teams with prior experience.

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Support for new DeFi projects

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The main barrier to new DeFi projects is lack of trust and, consequently, liquidity, the proposal notes:

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“Nobody wants to be first, and we understand this problem very well.”

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The FreeTON DeFi Alliance plans to create a separate fund to assist in launching DeFi projects. The fund size will be 50 million TON Crystal.

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The alliance will allocate 280 million ‘crystals’ to continue the liquidity-support programme for new DeFi projects on the Free TON blockchain.

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Creation of a public fund

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The Free TON ecosystem should see a public, nonprofit structure serving as an “entry point” for the outside world, the proposal’s authors write. Such an organisation could bring together enthusiasts with the necessary skills to work on branding, educational programmes, marketing, on-chain governance, and other matters.

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From the outset, the new organisation should be a decentralized autonomous organisation (DAO), and the initial fund’s composition should include representatives of the Free TON Governance, the FreeTON DeFi Alliance believes. They recommended allocating 50 million TON Crystal to the fund’s operations.

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The proposal to create a public nonprofit fund, alongside an updated approach to partner engagement, was supported by the Free TON Governance almost unanimously, Maslyakov said. He added that a centralised fund would not hinder the decentralised structure of Free TON, since the network’s Governance Board would select the fund’s composition and assess its performance.

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For the continuation of its own operations, the FreeTON DeFi Alliance requested 250 million “crystals,” of which 80 million would be paid immediately and the remaining 170 million coins would be evenly distributed over the next two years.

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As a reminder, the Free TON DeFi Alliance, together with the GDA Capital fund launched a startup competition.

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Earlier on the decentralized TON Swap exchange, a program to support yield farming started.

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